THE INSTITUTE OF FINANCE MANAGEMENT

FACULTY: ACCOUNTING,BANKING AND FINANCE

DEPARTMENT OF ACCOUNTING AND FINANCE
BACHELOR OF SCIENCE IN TAXATION
SUBJECT: PRINCIPLE OF ACCOUNTING
CODE: AFU 07101
STREAM A
GROUP 03

INDIVIDUAL ASSIGMENT
NAME: RAIMOND JOHN VENUS
REG: IMC/ BAIT/2012311
 CHIPUMALANGA ENTERPRISES
STATEMENT OF PROFIT AND LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31th DECEMBER 2019.

AMOUNT AMOUNT AMOUNT

PARTICULARS (Tshs) (Tshs) (Tshs)
Sales 517,900,000
Less :return inward (7,300,000)
NET SALES 510,600,000
less Cost of sales
Opening stock 34,300,000
add :purchases 368,400,000
Add: carriage inward 22,200,000
Less: return outward (6,200,000)
Less: drawing of goods(goods taken) (1,200,000)
Net purchases 383,200,000
Cost of goods available for sale 417,500,000
Less: closing stock (31,800,000) 385,700,000
GROSS PROFIT 124,900,000
Add other incomes
Rent received (Note 1) 3,380,000
Commission received (Note 2) 12,000,000
Discount received 8,400,000 23,780,000
Total income 148,680,000
LESS; OPERATING EXPENSES
Distribution expenses(Note 4) 20,941,000
Administrative expenses(Note 3) 70,580,000
Other expenses (Note 5) 34,800,000

Total expenses (126,321,000)

NET PROFIT 22,359,000
 CHIPUMALANGA ENTERPRISES

STATEMENT OF FINANCIAL POSITION AS AT 31th DECEMBER 2019

DETAILS COST(Tshs) PFD(Tshs) NBV(Tshs)

NON CURRENT ASSET
freehold premises 46,000,000
Motor vehicles 12,000,000 (5,700,000) 6,300,000
Furniture 2,500,000 (1,500,000) 1,000,000
T0TAL NON CURRENT 53,300,000
ASSET
CURRENT ASSETS
Stock 31,800,000
Cash and cash 6,900,000
Equivalent(note 8)
Debtors(note 9) 43,659,000
Accrued commission 800,000
received
TOTAL CURRENT 83,159,000
ASSET
TOTAL ASSETS 136,459,000
EQUITY AND
LIABILITIES
Net capital(note 10) 77,059,000
CURRENT LIABILITIES
Creditors 57,100,000
prepaid rent received 420,000
Accrued salaries 1,800,000
Accrued electricity and 80,000
power
TOTAL LIABILITIES 59,400,000
TOTAL EQUITY AND 136,459,000
LIABILITIES
Where by PFD (Provision for depreciation)

NBV (Net book value)

WORKINGS

Rent received (note 1) 3,800,000

Less: prepaid (420,000) 3,380,000

Commission received (note 2) 11,200,000

Add: Accrued 800,000 12,000,000

Administration expenses (note 3)

Depreciation on furniture 500,000

Depreciation motor vehicle 1,200,000

Printing and stationery 3,600,000

Salaries 42,400,000

Electricity and Water 14,900,000

Add accrued 80,000 14,980,000

Insurance 6,800,000

Bad debt 400,000

Provision for bad debt 200,000

Less increase 900,000 700,000 70,580,000

Distribution expenses (note 4)

Carriage outward 10,300,000

Discount allowed 10,200,000

Provision for discount allowed 441,000 20,941,000

Other expenses (note 5)

General expenses 34,800,000

Dr Provision for depreciation on motor vehicle account (note 6) Cr

Balance b/d 4,500,000

Balance c/d 5,700,000 Income statement 1,200,000
5,700,000 5,700,000
Balance b/d 5,700,000

Dr Provision for depreciation on Furniture account (note 7) Cr

Balance b/d 1,000,000

Balance c/d 15,00,000 Income statement 500,000
1,500,000 1,500,000
Balance b/d 1,500,000

Cash and cash equivalent (note 8)

Bank 5,000,000

Cash 1,900,000 6,900,000

Debtors (note 9) 45,000,000

Less provision for bad debt (900,000)

Less provision for discount allowed (441,000) 43,659,000

Net capital (note 10)

Capital 70,000,000

Add net profit 22,039,000

Less drawings 14,100,000

Goods taken 1,200,000 (15,300,000) 77,959,000

Provision for depreciation on motor vehicle

12,000,000*10% = 1,200,000

Provision for depreciation on furniture

2,500,000*20% = 500,000

Provision for bad debt

45,000,000*2% = 900,000

Provision for discount allowed

45,000,000 – 900,000 = 44,100,000

44,100,000*1% = 441,000